THE WHITE HOUSE

Office of the Press Secretary

EMBARGOED FOR12:00PM EST WEDNESDAY, DECEMBER 17, 2014
Fact Sheet: Charting a New Course on Cuba
Today, the United States is taking historic steps to chart a new course in our relations
with Cuba and to further engage and empower the Cuban people. We are separated by
90 miles of water, but brought together through the relationships between the two
million Cubans and Americans of Cuban descent that live in the United States, and the
11 million Cubans who share similar hopes for a more positive future for Cuba.
It is clear that decades of U.S. isolation of Cuba have failed to accomplish our enduring
objective of promoting the emergence of a democratic, prosperous, and stable Cuba.
At times, longstanding U.S. policy towards Cuba has isolated the United States from
regional and international partners, constrained our ability to influence outcomes
throughout the Western Hemisphere, and impaired the use of the full range of tools
available to the United States to promote positive change in Cuba. Though this policy
has been rooted in the best of intentions, it has had little effect today, as in 1961,
Cuba is governed by the Castros and the Communist party.
We cannot keep doing the same thing and expect a different result. It does not serve
Americas interests, or the Cuban people, to try to push Cuba toward collapse. We
know from hard-learned experience that it is better to encourage and support reform
than to impose policies that will render a country a failed state. With our actions today,
we are calling on Cuba to unleash the potential of 11 million Cubans by ending
unnecessary restrictions on their political, social, and economic activities. In that spirit,
we should not allow U.S. sanctions to add to the burden of Cuban citizens we seek to
help.
Today, we are renewing our leadership in the Americas. We are choosing to cut loose
the anchor of the past, because it is entirely necessary to reach a better future for our
national interests, for the American people, and for the Cuban people.
Key Components of the Updated Policy Approach:
Since taking office in 2009, President Obama has taken steps aimed at supporting the
ability of the Cuban people to gain greater control over their own lives and determine
their countrys future. Today, the President announced additional measures to end our
outdated approach, and to promote more effectively change in Cuba that is consistent
with U.S. support for the Cuban people and in line with U.S. national security interests.
Major elements of the Presidents new approach include:

Establishing diplomatic relations with Cuba

The President has instructed the Secretary of State to immediately initiate
discussions with Cuba on the re-establishment of diplomatic relations with Cuba,
which were severed in January 1961.

In the coming months, we will re-establish an embassy in Havana and carry out
high-level exchanges and visits between our two governments as part of the

normalization process. As an initial step, the Assistant Secretary of State for

Western Hemisphere Affairs will lead the U.S. Delegation to the next round of
U.S.-Cuba Migration Talks in January 2015, in Havana.

U.S. engagement will be critical when appropriate and will include continued
strong support for improved human rights conditions and democratic reforms in
Cuba and other measures aimed at fostering improved conditions for the Cuban
people.

The United States will work with Cuba on matters of mutual concern and that
advance U.S. national interests, such as migration, counternarcotics,
environmental protection, and trafficking in persons, among other issues.
Adjusting regulations to more effectively empower the Cuban people
The changes announced today will soon be implemented via amendments to
regulations of the Departments of the Treasury and Commerce. Our new policy
changes will further enhance our goal of empowering the Cuban population.

Our travel and remittance policies are helping Cubans by providing alternative
sources of information and opportunities for self-employment and private
property ownership, and by strengthening independent civil society.

These measures will further increase people-to-people contact; further support

civil society in Cuba; and further enhance the free flow of information to, from,
and among the Cuban people. Persons must comply with all provisions of the
revised regulations; violations of the terms and conditions are enforceable under
U.S. law.

Facilitating an expansion of travel under general licenses for the 12 existing

categories of travel to Cuba authorized by law
General licenses will be made available for all authorized travelers in the
following existing categories: (1) family visits; (2) official business of the U.S.
government, foreign governments, and certain intergovernmental organizations;
(3) journalistic activity; (4) professional research and professional meetings; (5)
educational activities; (6) religious activities; (7) public performances, clinics,
workshops, athletic and other competitions, and exhibitions; (8) support for the
Cuban people; (9) humanitarian projects; (10) activities of private foundations or
research or educational institutes; (11) exportation, importation, or transmission
of information or information materials; and (12) certain export transactions that
may be considered for authorization under existing regulations and guidelines.

Travelers in the 12 categories of travel to Cuba authorized by law will be able to

make arrangements through any service provider that complies with the U.S.
Treasurys Office of Foreign Assets Control (OFAC) regulations governing travel
services to Cuba, and general licenses will authorize provision of such services.

The policy changes make it easier for Americans to provide business training for
private Cuban businesses and small farmers and provide other support for the
growth of Cubas nascent private sector. Additional options for promoting the
growth of entrepreneurship and the private sector in Cuba will be explored.

Facilitating remittances to Cuba by U.S. persons

Remittance levels will be raised from $500 to $2,000 per quarter for general
donative remittances to Cuban nationals (except to certain officials of the

government or the Communist party); and donative remittances for humanitarian

projects, support for the Cuban people, and support for the development of
private businesses in Cuba will no longer require a specific license.
Remittance forwarders will no longer require a specific license.

Authorizing expanded commercial sales/exports from the United States of certain

goods and services
The expansion will seek to empower the nascent Cuban private sector. Items
that will be authorized for export include certain building materials for private
residential construction, goods for use by private sector Cuban entrepreneurs,
and agricultural equipment for small farmers. This change will make it easier for
Cuban citizens to have access to certain lower-priced goods to improve their
living standards and gain greater economic independence from the state.

Authorizing American citizens to import additional goods from Cuba

Licensed U.S. travelers to Cuba will be authorized to import $400 worth of goods
from Cuba, of which no more than $100 can consist of tobacco products and
alcohol combined.

Facilitating authorized transactions between the United States and Cuba

U.S. institutions will be permitted to open correspondent accounts at Cuban
financial institutions to facilitate the processing of authorized transactions.

The regulatory definition of the statutory term cash in advance will be revised to
specify that it means cash before transfer of title; this will provide more efficient
financing of authorized trade with Cuba.

U.S. credit and debit cards will be permitted for use by travelers to Cuba.

These measures will improve the speed, efficiency, and oversight of authorized
payments between the United States and Cuba.

Initiating new efforts to increase Cubans access to communications and their

ability to communicate freely
Cuba has an internet penetration of about five percentone of the lowest rates
in the world. The cost of telecommunications in Cuba is exorbitantly high, while
the services offered are extremely limited.

The commercial export of certain items that will contribute to the ability of the
Cuban people to communicate with people in the United States and the rest of
the world will be authorized. This will include the commercial sale of certain
consumer communications devices, related software, applications, hardware,
and services, and items for the establishment and update of communicationsrelated systems.

Telecommunications providers will be allowed to establish the necessary

mechanisms, including infrastructure, in Cuba to provide commercial
telecommunications and internet services, which will improve
telecommunications between the United States and Cuba.
Updating the application of Cuba sanctions in third countries
U.S.-owned or -controlled entities in third countries will be generally licensed to
provide services to, and engage in financial transactions with, Cuban individuals

in third countries. In addition, general licenses will unblock the accounts at U.S.
banks of Cuban nationals who have relocated outside of Cuba; permit U.S.
persons to participate in third-country professional meetings and conferences
related to Cuba; and, allow foreign vessels to enter the United States after
engaging in certain humanitarian trade with Cuba, among other measures.

Pursuing discussions with the Cuban and Mexican governments to discuss our
unresolved maritime boundary in the Gulf of Mexico
Previous agreements between the United States and Cuba delimit the maritime
space between the two countries within 200 nautical miles from shore. The
United States, Cuba, and Mexico have extended continental shelf in an area
within the Gulf of Mexico where the three countries have not yet delimited any
boundaries.

The United States is prepared to invite the governments of Cuba and Mexico to
discuss shared maritime boundaries in the Gulf of Mexico.

Initiating a review of Cubas designation as a State Sponsor of Terrorism

The President has instructed the Secretary of State to immediately launch such a
review, and provide a report to the President within six months regarding Cubas
support for international terrorism. Cuba was placed on the list in 1982.

Addressing Cubas participation in the 2015 Summit of the Americas in Panama

President Obama will participate in the Summit of the Americas in Panama.
Human rights and democracy will be key Summit themes. Cuban civil society
must be allowed to participate along with civil society from other countries
participating in the Summit, consistent with the regions commitments under the
Inter-American Democratic Charter. The United States welcomes a constructive
dialogue among Summit governments on the Summits principles.

Unwavering Commitment to Democracy, Human Rights, and Civil Society

A critical focus of our increased engagement will include continued strong support by
the United States for improved human rights conditions and democratic reforms in
Cuba. The promotion of democracy supports universal human rights by empowering
civil society and a persons right to speak freely, peacefully assemble, and associate,
and by supporting the ability of people to freely determine their future. Our efforts are
aimed at promoting the independence of the Cuban people so they do not need to rely
on the Cuban state.
The U.S. Congress funds democracy programming in Cuba to provide humanitarian
assistance, promote human rights and fundamental freedoms, and support the free flow
of information in places where it is restricted and censored. The Administration will
continue to implement U.S. programs aimed at promoting positive change in Cuba, and
we will encourage reforms in our high level engagement with Cuban officials.
The United States encourages all nations and organizations engaged in diplomatic
dialogue with the Cuban government to take every opportunity both publicly and
privately to support increased respect for human rights and fundamental freedoms in

Cuba.
Ultimately, it will be the Cuban people who drive economic and political reforms. That is
why President Obama took steps to increase the flow of resources and information to
ordinary Cuban citizens in 2009, 2011, and today. The Cuban people deserve the
support of the United States and of an entire region that has committed to promote and
defend democracy through the Inter-American Democratic Charter.